New budget carrier Koala Airlines set to launch in Australia by 2026

A new airline is entering the commercial aviation market scene in Australia: budget carrier Koala Airlines, set to take off by late 2026.

Despite not having any aircraft yet, the airline’s website states that it is committed to “redefining air travel and setting new standards” that will reshape the Australian landscape.

The newcomer also said its strategy will “fundamentally differ from previous entrants in a domestic market which has been long dominated by two major airlines.”

The two major airlines Koala Airlines is presumably referring to are Qantas and Virgin Australia. 

The Australian government introduced the Two Airline Policy in 1952 as a legal barrier for new entrants to the country’s aviation market. Until the government relaxed the policy in 1990, only two airlines were allowed to operate flights between state capital cities and between capitals and nominated regional centers.

“Taking a more innovative route”

According to Koala Airlines, many new low-cost carriers have entered the market since 1990 and focused solely on offering cheaper fares, almost entirely leading to unsustainable competition. The new airline said it is “taking a more innovative route” by carving out a niche that will enhance the industry landscape without disrupting existing standards

In 2019, Koala Airlines acquired Desert Air Safaris, a pioneering company in air tours and charter flights that had been operating for over 50 years throughout Australia, Papua New Guinea and the Pacific Islands. 

Now rebranded as Koala Airlines, the Melbourne-based company said that its focus is clear. 

“We aim to distinguish ourselves by our new initiatives and innovations that complement rather than compete with established norms,” the airline stated.

Koala Airlines’ founding CEO is Bill Astling, who has 45 years of experience in aviation and tourism. According to his bio on the airline’s website, Astling provided a range of consulting services from senior leadership to operational, technical and advisory roles to 12 existing and startup airlines in the Asia Pacific region since the early 1990s. These included Singapore Airlines, Air India, Sri Lankan Airlines and Malaysian Airlines.

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